Reviewing Your Clients’ Existing Investments is Necessary. Here’s How you can do so


Consider the following two scenarios –

  1. You have a client who has just got married
  2. You have a client who has teenaged kids

Would the financial needs of both the clients be the same?

Furthermore, if your first client creates a financial plan after getting married, would the plan be relevant when his children become teenagers?

Financial needs and requirements keep changing. Every time your clients move to a different stage of their life, their financial needs shift. These shifting needs need to be aligned with their existing financial plan. The financial plan should also change in tandem with the changing financial needs of your clients. This is why a regular review of your client’s financial portfolio becomes necessary.

Financial review – the concept

Financial review means a review of the financial portfolio. This review is needed regularly so that if the financial needs change, the financial portfolio can also be changed to reflect the changing needs.

Your clients might need your assistance in reviewing their financial portfolio. Since you are a qualified financial advisor, you can help your clients do a thorough financial review and make the necessary changes in their portfolio.

Here are some tips on how this financial review should be conducted for the best results –

    • Check if the portfolio is growing as expectedWhen your clients start investing towards a goal, they expect a minimum return on their investments which would help them build up an optimal corpus to meet their goals. You, therefore, need to check whether the investments are growing as expected or not. Market-linked investment avenues do not guarantee returns. Thus, it becomes important to check how such investments are performing and whether there is any scope to enhance the returns. If the portfolio is performing better than expected, you have additional funds which can be reinvested or used for financing any need. On the other hand, if the portfolio is underperforming, check why. Reallocate the investments towards other profitable avenues so that your clients can cut their losses.


    • Check if the goals are properly financedWhen reviewing your clients’ portfolio, you should check whether enough funds are being invested towards goal realization. If there is a shortage, ask your clients to supplement their investments to achieve the desired corpus.


    • Check if inflation is eating into the returnsInflation is another factor that hampers the returns earned. Inflation reduces the purchasing power of money and though your clients’ investments might be yielding returns, such returns might not be sufficient to meet their financial needs. So, check the effect of inflation on your clients’ portfolio and see if there is a need to switch to avenues that generate inflation-adjusted returns or to supplement savings.


    • Review the insurance coverage The last thing, and also the most important one, is to check whether your clients’ insurance covers are sufficient or not. There are two things that you need to review when you review the insurance aspect of your clients’ portfolio. They are as follows –
      1. Whether your clients have invested in suitable insurance policies or not
      2. Whether the sum insured and coverage benefits of the policies are optimal or not

      The first thing that you need to check is whether your clients have invested in insurance plans or not. If your clients don’t have insurance, the first step that you should take is to ensure that they invest in a suitable coverage for financial emergencies. If, on the other hand, your clients have insurance, check the sufficiency of the coverage. If your clients are underinsured or need additional coverage, educate them to invest in additional coverage for complete protection. Besides getting financial security, life and health insurance plans would also help your clients maximize tax saving.


After you conduct a review of your clients’ portfolio, advise them about the necessary changes that are required. The review would help your clients assess their financial position and strengthen it. For you, on the other hand, the review would open up possibilities of sales as your clients try and make their financial portfolio optimal. So, a review is beneficial for you and your clients and should be done at least once every year. This year, review your clients’ portfolio so that they can start the new financial year on a positive note.

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